PIA Dispatch - Thursday, July 30, 2009

PGMA gets warm welcome from Fil-Am community in Washington, D.C.

MANILA, July 30 – President Gloria Macapagal-Arroyo received a warm welcome on Thursday morning (Wednesday evening in the United States) from leaders of the Filipino-American community at the Willard Hotel in Washington, D.C.

Reports reaching Malacanang said hundreds of Fil-Am community leaders chanting “GMA, GMA, GMA” greeted a jet-lagged President Arroyo upon her arrival at the Willard Hotel’s Willard Ballroom. The chants were heard live over state-run DZRB (national radio) of the Philippine Broadcasting System (PBS).

It was 9:30 p.m. Wednesday over there and 10:30 a.m. in Manila, a difference of 13 hours.

The Chief Executive spoke in mixed Filipino dialects, including Tagalog and Kapampangan, to make her point. She delivered a speech where she reported to the Fil-Am community the numerous accomplishments of her administration since she assumed office in 2001.

Earlier, the Chief Executive met with officials of the US State Department, where she was briefed by the USSD on the Philippines-US Relations.

On Friday (Thursday in the US), President Arroyo will be the first Southeast Asian leader to meet with US President Barack Obama at the White House, with economic cooperation and fighting Islamic extremists in Mindanao high on the agenda.

The Chief Executive is due to hold talks in the afternoon (early morning in Manila) with President Obama. She will also meet with members of the US Congress and business groups.

The White House, in announcing the visit earlier this month, said that President Arroyo and President Obama would "further the traditionally strong alliance and bond" between the United States and the Philippines.

It said the two countries would discuss cooperation on fighting extremists as well as climate change, a key priority for the Obama administration as the deadline approaches for a new global treaty.

Before her departure from Manila early Wednesday afternoon, President Arroyo said that security issues would be high on her agenda during the meeting with her US counterpart.

She said her talks with the US President would touch on "terrorism -- how to meet it, how to end it, how to address its roots in historical injustice or religious prejudice."

Washington has been providing assistance and training to help the Philippine military crush Al-Qaeda-linked Abu Sayyaf militants, blamed for the country's worst terrorist attacks.

Since 2003, small numbers of US forces have been rotating in the Southern Philippines, providing intelligence that has led to the capture or killing of top militants.

President Arroyo's visit to Washington comes at a time when Southeast Asian neighbors -- particularly the Philippines and Indonesia -- are increasing their intelligence cooperation after a spate of deadly bombing.

A July 17 bombing of two luxury hotels in Jakarta, killing seven people, has been blamed on the Jemaah Islamiyah, an extremists group believed by intelligence agencies to be Al-Qaeda's Southeast Asian arm.

The Philippines is a former US colony in the early parts of the 20th century (1898-1945) and along with Thailand is the most long-standing US partner in Southeast Asia.

The Obama administration has also been stepping up relations with Indonesia, which is often hailed in Washington as a model for a moderate Muslim-majority democracy.


PGMA’s meeting with Obama – a pivotal time for US-Asia relations

WASHINGTON DC, July 30 - President Gloria Macapagal-Arroyo said today that her meeting with President Barack Obama at the White House here “comes at a pivotal time for US relations in Asia.”

Speaking before the officers and members of the Filipinos International of the United States of America (FILUSA), the Chief Executive said she’s very pleased to have accepted the invitation of President Obama for her to be the “first leader from our region to meet with him at the White House.”

“We’re very hopeful that the Obama administration will put America on the radar screen in Asia,” the President stressed.

The President noted that the visit to the region by Secretary of State Hillary Clinton where she met with Foreign Affairs Secretary Alberto Romulo in Thailand, together with the early outreach by President Obama “sent strong signals that the United States is committed to more robust engagements with the region.”

“The fact that President Obama sought out the Philippines for this first opportunity is a testament to the strong and deep ties between our two nations,” the President also said.

“Kaya maganda iyong mga placard ninyo: Mabuhay RP-US relations,” the President said referring to the wordings in the placards hanging on the walls during the dinner meeting.

The President pointed out that her “expectations for this trip are straightforward: to meet the new US president who is our strong friend and ally and advance the interest of the Philippines.”

She noted that the United States is essential to the country’s economic, diplomatic and national security.

The President stressed that high on the agenda during her meeting with President Obama will be peace and security issues, including ways to continue strengthen regional cooperation and anti-terrorism.

“We will also discuss the global economic crisis that have swept the world, and what we can do to mitigate its impact on the poor especially in Asia and the Philippines,” she said.

Despite the onslaught of the financial global crisis last year, the President said “the country weathered a succession of global crisis in fuel, in food, then in finance…. But never losing focus and with economic fundamentals intact.”

She also made mention that Moody’s upgraded the country’s credit rating in the middle of the global recession citing the resilience of the economy.

“Therefore, I could say that the state of our nation is a strong economy,” the President said


Analyst sees better growth figure for RP in Q2 ‘09

MANILA, July 30 (PNA) – Reports of higher government spending and continued resiliency of remittances are among the things that would prop-up the Philippine economy in the second quarter of this year.

Philippine Equity Partners Inc. (PEP) analyst Jojo Gonzales considers the 0.4 percent output of the domestic economy in the first quarter this year as the “worst quarter in terms of growth.”

“Increased government spending, sustained bank lending, the bottoming out of trade, stable remittance flows, all suggest mildly better growth in (the) second quarter,” he told PNA.

Gonzales said confidence of both the consumers and investors are “more positive at this stage” compared to that in the first three months of this year on account of positive reports on the domestic and global economy.

“The doomsday scenarios for the global economy have diminished and this should reduce the bearishness towards the Philippine economy, too,” he added.

Input of the government’s economic stimulus package was also cited by an official of an entity that conducts surveys as a factor for the improvement of consumers’ economic outlook in the second quarter of this year.

A recent online survey of Nielsen Global Consumer Confidence shows that stimulus packages of governments worldwide played a major role in the improvement of consumer confidence of Filipinos for one.

Reports said result of the Nielsen survey showed that confidence index (CI) of Filipinos improved to 103 percent from 96 percent during an online poll conducted from June 15-29, 2009.

Nielsen business insight director Jonathan Banks was quoted as saying that governments’ pump-priming programs along with improvements in the stock market boosted consumer confidence.

“Consumers in emerging and Asian markets are clearly of the view that they are driving in the recovery lane now,” he added.

Earlier, an official of the National Economic and Development Authority (NEDA) said he sees better than 0.4 percent growth for the Philippines in the second quarter this year on account of reports that the global downturn seems to be bottoming out.

NEDA Deputy Director General Rolando Tungpalan said they remain confident on the attainment of the full-year growth target of 0.8-1.8 percent because of reports that major economies are now churning in better figures.

He cited the positive direction of the global economy as well as the coming out of positive figures in the domestic front as among the reasons for their optimism.

He also noted the continued growth of remittances sent by Overseas Filipinos (OFs), which registered a new record high inflows last May after it grew by 3.7 percent year-on-year and reached US$ 1.48 billion, bringing the first five month’s total to US$ 6.98 billion, or a 2.8 percent jump from year-ago’s US$ 6.79 billion.

“The global economy is pulling away of a recession although recovery will be slow,” he said.

Tungpalan added that based on these indicators and reports of more investment plans by the private sector in the coming months, growth of the domestic economy is “moving upward.”

“There is reason for us to remain confident about our 0.8-1.8 GDP growth target this year,” he added.

The government is set to announce this year’s April to May performance next month.


BIR Oplan Kandado Storms 6 Pangasinan Establishments

BIR MANCOM Warns: “It is just the beginning.”

The aftermath of the storm that was the Bureau of Internal Revenue (BIR) Oplan Kandado showed the grim picture of its rage in Pangasinan: six (6) business establishments “flattened” for violating the book of taxation, the National Internal Revenue Code (NIRC) of 1997, as amended.

What made the operation even more coercive, if not frightening, was the fact that it was personally led by the BIR Management Committee (MANCOM) – the BIR Commissioner and his five (5) Deputy Commissioners – and the promise that Revenue Region No.1, Calasiao, Pangasinan was just the start of a resolute campaign that will take MANCOM to all nineteen (19) revenue regions of the BIR all over the country.

Temporarily closed or suspended from operating their businesses last July 17, 2009 while Typhoon ”Isang” was wreaking havoc over Luzon were MATUTINA-GERRY’s SEAFOOD RESTAURANT (Gerry’s) in Dagupan City and Urdaneta City owned by Gerry R. Austria, MATUTINA’s Annex I (Matutina’s) in Dagupan City owned by Marlene A. Lorica, NENA’s GARDEN RESTAURANT & CATERING SERVICES (Nena’s) in Dagupan City operated by Bernardina Mejia, and SILVERIO’s SEAFOOD & RESTAURANT, INC. (Silverio’s) in Dagupan City and Binmaley managed by Teresa Neihum. The closures were effected after the service (and acceptance) of the Closure Orders on the six businesses signed by BIR Commissioner Sixto S. Esquivias IV on the same date.

Revenue Region (RR) No. 1, Calasiao, Pangasinan Regional Director Tomas C. Rosales under whose jurisdiction the operations of the subject businesses fall said that his region was forced to implement the closure orders after they failed to rectify their violations even after they were given all the chances to do so through the 48-Hour Notice and Five (5) Day VAT Compliance Notice.

Commissioner Esquivias was more empathetic. “We do not feel good closing all these establishments considering the hard times. We offered all the help we can give to enable them to settle their dues. However, when they failed to refute our findings or to rectify their tax violations, they gave us no choice at all. Closure is the last thing we have in mind but we will have to do it when the call of duty beckons,” Esquivias said.

The ground cited for the closure of the six (6) businesses was understatement of taxable sales or receipts by 30% or more of correct taxable sales or receipts under Section 115 (a) (3) of the NIRC.

Results of surveillance activities including reading of CRM-POS machines conducted by fieldmen of RDO No. 04, Calasiao, Pangasinan led by Revenue District Officer Joseph M. Catapia showed substantial underdeclaration of sales for the taxable periods 2008 and 1st Quarter of 2009 by the subject taxpayers ranging from a low of 44% to a high of 84%. Gerry’s underdeclared its sales by P14,984,094.52 in 2008 and P4,229,279.69 for 2009 (1st Qtr.), Matutina’s by P6,693,251.62 and P1,542,941.47, Nena’s by P4,095,736.20 and P1,563,789.02, and Silverio’s by P10,284,572.00 and P6,241,157.67.

Total tax due from the six (6) businesses amounted to P32,920,729.83 broken down as follows: Gerry’s – P10,058,602.96 (2008) & P2,812,126.91 (2009 1st Qtr.); Matutina’s – P4,511,625.26 & P992,950.72; Nena’s – P2,612,733.67 & P962,736.09; and Silverio’s – P6,826,303.47 & P4,143,650.75.

“It saddens us to see the fate of the subject taxpayers come to this extreme. This feeling notwithstanding, we should put the country’s interest first above anything else. Let this serve as a mirror for other taxpayers similarly-situated. We will help them comply. But if they persist in their unwanted practices, we will not hesitate to impose the full force of the law,” Esquivias added.

To date, the BIR has padlocked fifty-nine (59) business establishments nationwide. Among those previously padlocked by the BIR under this program were: 1) La Suerte Grocery & Bakery in Magalang, Pampanga for failure to declare more than P50M income in 2008; 2) Charmy Food Phils., Inc., a manufacturer of soybean products in Pasig City, for not declaring P40M of its sales for 2005-2008; 3) Arra’s Fine Dining, a Korean Restaurant in Makati City for understatement of its taxable sales in 2008 by more than P20M; 4) Hilton Mart Corporation, a Grocery (Wholesale and Retail) business plying its trade in Manila, for underdeclaring its sales for taxable year 2008 by more than P1.2B; and 5) Raiko 10-28 Bar & Restaurant, a.k.a. RATSKY, located at Tomas Morato, Quezon City for failure to declare more than P24M sales in 2007, 2008 and January and February of 2009.

Oplan Kandado is the flagship project of the BIR initiated by Commissioner Esquivias which aims to strictly enforce sanctions for non-compliance by business establishments with requirements of the Tax Code. (rtdlc)


DOST honors 353 scholar graduates

The Department of Science and Technology-Science Education Institute on Thursday (July 16) honored 353 scholar graduates who graduated in their programs in college and post-graduate degrees for the school year 2008-2009.

At the “In Touch with Excellence” awarding ceremonies held at the Dusit Thani Manila Hotel, Makati City , the scholar-graduates were awarded medals for their outstanding performance on the course of their study.

Under the DOST-SEI Merit Scholarship, the precursor of all S&T scholarships of DOST, 16 scholars graduated magna cum laude, 29 cum laude and three honorable mention. In the Republic Act 7687 Scholarship Program, five scholars finished summa cum laude, 20 magna cum laude, 111 cum laude, and three with honors. RA 7687 or the Science and Technology Scholarship Act of 1994 aims to strengthen the science and technology human resource program of the government by granting financial assistance to poor but talented students to intend to pursue priority courses in science and technology.

Three scholars also graduated before the prescribed period of study and as an incentive, the stipends for the remaining semesters will be released to the scholar and the duration of his/her service obligation would be equivalent to the number of years he/she completed the course.

Under the Junior Level Science Scholarship Program, nine graduated magna cum laude, 47 cum laude and one academic distinction. This scholarship program is offered to qualified regular third year college students who are enrolled in the priority courses in the basic sciences, engineering, and other applied sciences in any of the DOST-SEI network of higher education institutions.

In the Project 2004-01 Ed USC Cooperative program, three graduated with honors. This scholarship program is offered to qualified Physics students enrolled at the University of San Carlos in Cebu.

One graduated cum laude under the Junior Level Scholarships for Physics Teaching given for those enrolled in the Regional Science Teaching Centers. Scholars under this program are incoming third year BSE Physics students enrolled in DOST-SEI recommended schools.

Three scholars of the Grant for Educational Assistance for Technology and Science Teaching Courses in Mindanao (GREAT-M) graduated with honors. The GREAT-M project is open to poor, talented and deserving youths from the Muslim and indigenous communities who are 20 years old or below and whose socio-economic status meet the criteria for the grant.

Under the President Gloria Macapagal-Arroyo Graduate Scholarship in Science and Technology through the DOST Accelerated S&T Human Resource Development (ASTHRD) Program, one scholar graduated magna cum laude.

The ASHTRD Program is a unified and innovative human resource program aimed at accelerating the production of high level human resources by awarding MS and PhD scholarship grants to eligible individuals who will fill in the gaps of identified areas of science and technology. DOST also honored, in the ceremony, scholars in the MS and PhD programs who have completed their course.

Speaking at the awarding ceremony, DOST Secretary Estrella Alabastro prodded the students to continue the path of excellence that they have started.

“I hope that our students maintain this excellence in everything they do in whatever path they choose to take or make. A culture of science and technology should be matched with a culture of excellence and innovation,” she said.

For her part, SEI Director Dr. Ester B. Ogena said she is confident that DOST scholars would be able to give back to the Filipino people more than what they have invested on them.

“The future of the Philippines is now upon your hands and we are confident that you would be able to give back to the millions of Filipinos that helped you through your college life. They depend on you,” she said.